For Canada's Oil-Rail Terminal Firms, Muted Glee Over Keystone
CALGARY, Alberta, April 23 (Reuters) - The handful of firms racing to build oil train terminals in Western Canada should be rejoicing over the latest delay to TransCanada's Keystone XL oil pipeline, but many have troubles of their own.
Companies including Canexus Corp and Gibson Energy Inc are building terminals that will pump Western Canadian crude on to mile-long trains bound for U.S. refiners. In theory, these firms have the most to benefit from a months-long delay in U.S. approval to the 1,200 mile (1,900 km) pipeline that would link Canadian oil fields to refiners on the U.S. Gulf coast.
Canexus, Gibson Energy, whose shares hit an all-time high on Tuesday, and others have moved over the past two years to position themselves as the quicker, although costlier, option for shipping Canadian crude across North America.
But many are struggling to get their terminals up and running due to chronic labor shortages in Alberta, a harsh winter and cost overruns. That means they may not be able to fully exploit the growing shortage of pipeline capacity, as they had hoped.
To be sure, some like Ceres Global Ag Corp are seeking to press their advantage after Washington said on Friday it would postpone a final decision on the Keystone XL line, likely until after U.S. congressional elections in November.
While the firm's first crude terminal, a 25,000 bpd facility in Northgate, Saskatchewan, is nearly a year behind schedule, it hopes the Keystone news will flush out future customers that could support its eventual expansion to 70,000 bpd.
"Our sales team will be out in Calgary next week and we will be testing that," Michael Detlefsen, president and chief executive officer, told Reuters. "The prospective pipeline delays present a three- to five-year window in which oil-by-rail could provide a reasonable alternative to the pipelines."
123
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension